Cloud services and infrastructure spending hits US$150B

Cloud services and infrastructure spending hits US$150B

Cloud services spending surpasses data centre infrastructure support spending in the first half of 2019

Credit: 101711207 © Sittikan Katchamart -

Operator and vendor revenue for seven market segments for cloud services and infrastructure surpassed US$150 billion in the first half of 2019, an increase of 24 per cent compared to the first half of 2018 according to data from Synergy Research Group.

Across cloud infrastructure services, infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) saw the largest growth of 44 per cent compared to the first half of 2018, with Amazon, Microsoft and Google as the top players in the market.

Enterprise software-as-a-service (SaaS) followed at 27 per cent, with Microsoft, Salesforce and Adobe as the main players. Meanwhile, unified communications-as-a-service grew 23 per cent and hosted private cloud infrastructure services at 20 per cent.

Those markets count with RingCentral, Mitel, 8X8, IBM, Rackspace and NTT as the major players in those markets, respectively.

Additionally, cloud provider spending on colocation and data centre leasing spending grew by 17 per cent and hardware and software for public and private and hybrid infrastructure spending grew by 10 per cent.

Synergy Research Group data also showed that, in aggregate, spending on cloud services surpassed spending for the support of data centre infrastructure.

John Dinsdale, chief analyst at Synergy Research Group, said cloud-associated markets are growing between 10 per cent to over 40 per cent and predicted the dominating nature of the cloud in the IT landscape will see annual spending for cloud technology doubling in less than four years’ time.

“Cloud has opened up a range of opportunities for new market entrants and for disruptive technologies and business models,” Dinsdale said.

“Amazon and Microsoft have led the charge in terms of driving changes and aggressively growing cloud revenue streams, but many other tech companies are also benefiting. The flip side is that some traditional IT players are having a hard time balancing protection of legacy businesses with the need to fully embrace cloud.”

Meanwhile, the total spend for hardware and software to build cloud infrastructure nearly reached US$55 billion, which Synergy Research Group indicated was “somewhat evenly split” between public.

Private clouds and infrastructure investments by cloud service providers also generated more than US$90 billion in revenue from cloud infrastructure services – which includes Iaas, PaaS and hosted private cloud services – and enterprise SaaS.

Tags Synergy research group

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